Imposing a tax on a market typically hurts
A. buyers only.
B. sellers only.
C. buyers, sellers, and government agencies.
D. both buyers and sellers.
Answer: D
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As long as an additional worker hired by a firm produces
A) more output than the real wage rate, the firm will hire that worker. B) more output than the real wage rate, the firm will not hire that worker. C) less output than the real wage rate, the firm will hire that worker. D) some output, the firm will hire that worker. E) more output than the nominal wage rate, the firm will hire that worker.
The data in the above table indicate that when the price level is 120
A) firms have unexpectedly low inventories, so prices will rise. B) inventories are at levels planned by firms. C) firms will plan to increase the level of output. D) firms have unexpectedly high inventories, so prices fall.
Hardware stores charge higher prices for snow shovels after a big snowstorm. What role do prices play in the snow shovel market?
What will be an ideal response?
Ad valorem taxes _____
a. are based on the dollar value of the good b. are based on the number of units sold c. are taxes on advertising d. b and c